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Belgium as a small open economy in the core of Europe

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  • Filip Abraham
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    Abstract

    Small open economies in Europe share many of the same characteristics, policy choices and economic problems. This paper argues that Belgium is profoundly affected by its position as a small open economy in the core of the European Union. Yet, this European dimension does not prevent that even a small open economy as Belgium takes policy decisions with far-reaching consequences. The Belgian experience also provides several interesting insights for other small European countries and for the European integration process as a whole. In this context, particular attention is paid to (1) the consequences of a fixed exchange rate policy, (2) the interdependence between exchange rate stabilization, income policy and international competitiveness, (3) budgetary discipline in the run-up to European Monetary Union, (4) long-run international trade specialization, (5) labor market performance and (6) Belgian federalism.

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    Bibliographic Info

    Paper provided by Government Institute for Economic Research Finland (VATT) in its series Discussion Papers with number 109.

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    Date of creation: 01 Jan 1995
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    Handle: RePEc:fer:dpaper:109

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    Keywords: small open economies; European integration; federalism;

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